Riverbed Technology today announced its intention to acquire Application Performance Management (APM) vendor OPNET. The deal is valued at $1 billion and is expected to close by the end of this calendar year.
Riverbed will be paying $43 per OPNET share in a cash and stock deal. The plan is to combine the OPNET technology with Riverbed’s Cascade business unit.
“This is a strategic acquisition that is highly complementary to Cascade and Riverbed as a whole,” Jerry Kennelly, Chairman and CEO at Riverbed said during a morning press conference to discuss the deal.
Cascade is Riverbed’s Network Performance Management (NPM) technology. Riverbed acquired the Cascade technology with the acquisition of CACE technology in October of 2010. Eric Wolford EVP and GM for the Products Group at Riverbed said during the call that the acquisition of OPNET is an acceleration of the strategy that the Cascade product group is all about.
“This isn’t a new direction, but an acceleration of our existing strategy focused on delivering performance improvements to the network,” Wolford said. “Cascade NPM brings visibility to the network. OPNET goes beyond that, measuring the true end user experience with capabilities including application component monitoring, code level traces as well as root cause analysis.”